When the BPDB floated the project's tender for the sixth time in October last year, two companies participated in it -- Japanese Sumitomo Corporation and Chi-nese Harbin Power Engineering Ltd.

The tender rules dictate that the bidder must have 10 years' experience in setting up and operation of combined cycle power plants. Harbin lacks this experience, but the BPDB overlooked this shortcoming, sources said.

In November, Sumitomo withdrew from the bidding accusing the BPDB of siding with Harbin, which is not supposed to be considered technically qualified as per the bidding criterion. "BPDB is not proceeding with the evaluation process in a fair and transparent way...," Sumitomo wrote to the BPDB accusing it of favouring Harbin.

The BPDB however does not accept the allegations. It says Sumitomo has withdrawn because it had lapses in its proposal.

And now the BPDB has asked Harbin, the lone bidder, to submit its financial offer by the first week of February, sources said.

"There are some shortcomings in the Harbin's proposal, but we can go ahead with it," said a BPDB high official, "the fact is we have re-tendered this project five times. So we are going ahead with whatever we have."

"But this is not final. We will seek the government's permission. If the government gives the go-ahead, we will proceed with it," the BPDB official added.

Harbin was previously awarded the Tongi 100 megawatt simple cycle power plant of the BPDB.

Since September 2002, a lobby belonging to 'an alternative power centre' of the government has been trying to make the BPDB sign the deal with a certain company of their choice, sources said. Their interference has led to repeated re-tendering.

The fifth bid had to be cancelled amid apparent protest of the bidders against BPDB's questionable dealing. The Canadian government in this process sided with the project's Canadian bidder Lavalin and warned against BPDB's blatant favouring of Sumitomo.

Sumitomo was having the final negotiation with the BPDB in the fifth tender. While Sumitomo turned out to be the lowest bidder with an offer of 83 million dollars, the Japanese company modified its pricing by adding another two million dollars afterwards violating tender rules. But the BPDB did not bother with this violation.

Since the last bid that was cancelled six months ago, the project's estimated cost has risen by 30 to 35 percent, industry insiders said. The lowest price offered in the fifth tender was around 85 million dollars.

"The price of steel has risen by 30 percent; plus taka has weakened heavily against Euro and lost some value against the dollar. So whoever implements this project will quote a much higher price," said an industry insider.

As the authorities are repeatedly re-tendering the project, power plant developers who had earlier shown interest in it have also stopped knocking at the BPDB's door and brought allegation of corruption in the tendering process.